In a significant restructuring move, telecommunications equipment giant Nokia has revealed plans to cut up to 14,000 positions globally. This reduction represents approximately 20% of its total workforce and comes as a direct response to a sharp decline in demand for 5G infrastructure and intensifying competitive pressures within the sector.
Financial Performance and Strategic Pivot
Despite reporting a net sales increase of 2-3% for the full year 2025, reaching approximately €19.9 billion, and an operating profit of around €2.0 billion, the company is embarking on a stringent cost-saving program. Management indicated that these figures are insufficient to offset current market challenges. As major telecom operators continue to curtail their spending on 5G equipment, Nokia faces sustained margin pressure, necessitating the deep cuts.
The job reductions are part of a broader structural realignment. Nokia is consolidating its business groups from three down to two: Network Infrastructure and Mobile Infrastructure. This streamlined model is designed to sharpen the company’s focus on strategic growth areas like artificial intelligence and cloud services, bolstered by its completed acquisition of Infinera in 2025.
Should investors sell immediately? Or is it worth buying Nokia?
Geographic Impact and Leadership Changes
The restructuring will have a pronounced effect on Nokia’s operations in India. The region is set to bear a substantial portion of the cuts, with an estimated 3,400 jobs at risk out of a current workforce exceeding 17,000 in the country. This decision follows a difficult fourth quarter in 2025, where net sales in India plummeted by 15% to about €393 million.
Concurrent with the operational changes, a leadership transition is underway for Nokia’s Indian business. Effective April 1, 2026, Samar Mittal will assume the role of Country Business Leader. Vibha Mehra will take on responsibilities for government relations and strategic communication. The outgoing India chief, Tarun Chhabra, will be departing the company.
A Continuing Trend and Market Reaction
This latest workforce reduction continues a long-term trend for the Finnish network provider. Since 2018, Nokia’s employee count has steadily decreased from 103,000 to roughly 74,100 prior to this announcement. The company’s shares currently trade near €6.90, which is about 8% below their 52-week high of €7.50 reached in mid-March.
Ad
Nokia Stock: Buy or Sell?! New Nokia Analysis from June 28 delivers the answer:
The latest Nokia figures speak for themselves: Urgent action needed for Nokia investors. Is it worth buying or should you sell? Find out what to do now in the current free analysis from June 28.
Nokia: Buy or sell? Read more here...
